UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6537
Van Kampen Trust For Investment Grade New York Municipals
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(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 10/31
Date of reporting period: 4/30/06
Item 1. Reports to Shareholders.
The Trust's semiannual report transmitted to shareholders pursuant to
Rule 30e-1 under the Investment Company Act of 1940 is as follows:
Welcome, Shareholder
In this report, you'll learn about how your investment in Van Kampen
Trust for Investment Grade New York Municipals performed during the
semiannual period. The portfolio management team will provide an overview
of the market conditions and discuss some of the factors that affected
investment performance during the reporting period. In addition, this
report includes the trust's financial statements and a list of trust
investments as of April 30, 2006.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO
PASS. THERE IS NO ASSURANCE THAT THE TRUST WILL ACHIEVE ITS INVESTMENT
OBJECTIVE. TRUSTS ARE SUBJECT TO MARKET RISK, WHICH IS THE POSSIBILITY
THAT THE MARKET VALUES OF SECURITIES OWNED BY THE TRUST WILL DECLINE AND
THAT THE VALUE OF TRUST SHARES MAY THEREFORE BE LESS THAN WHAT YOU PAID
FOR THEM. ACCORDINGLY, YOU CAN LOSE MONEY INVESTING IN THIS TRUST.
INCOME MAY SUBJECT CERTAIN INDIVIDUALS TO THE FEDERAL ALTERNATIVE MINIMUM
TAX (AMT).
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NOT FDIC INSURED OFFER NO BANK GUARANTEE MAY LOSE VALUE
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NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT A DEPOSIT
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Performance Summary as of 04/30/06
TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
SYMBOL: VTN
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AVERAGE ANNUAL BASED ON BASED ON
TOTAL RETURNS NAV MARKET PRICE
Since Inception (03/27/92) 7.77% 7.05%
10-year 7.54 7.64
5-year 7.47 6.57
1-year 3.29 6.35
6-month 2.26 0.94
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PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF
FUTURE RESULTS, AND CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES
SHOWN. FOR THE MOST RECENT MONTH-END PERFORMANCE FIGURES, PLEASE VISIT
VANKAMPEN.COM OR SPEAK WITH YOUR FINANCIAL ADVISOR. INVESTMENT RETURNS, NET
ASSET VALUE (NAV) AND COMMON SHARE MARKET PRICE WILL FLUCTUATE AND TRUST SHARES,
WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NAV per share is determined by dividing the value of the trust's portfolio
securities, cash and other assets, less all liabilities and preferred shares, by
the total number of common shares outstanding. The common share market price is
the price the market is willing to pay for shares of the trust at a given time.
Common share market price is influenced by a range of factors, including supply
and demand and market conditions. Total return assumes an investment at the
beginning of the period, reinvestment of all distributions for the period in
accordance with the trust's dividend reinvestment plan, and sale of all shares
at the end of the period.
The Lehman Brothers New York Municipal Bond Index is a broad-based statistical
composite of New York municipal bonds. The index does not include any expenses,
fees or sales charges, which would lower performance. The index is unmanaged and
should not be considered an investment. It is not possible to invest directly in
an index.
1
Trust Report
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
MARKET CONDITIONS
The economy continued to grow during the six-month period ended April 30, 2006,
demonstrating some resiliency in the face of rising oil and other commodity
prices, the Gulf Coast hurricanes, and emerging weakness in the housing market.
This expansion was more modest in the final months of 2005, but gained
considerable momentum in the first quarter.
Against the backdrop of growth and good employment data, the Federal Open Market
Committee (the "Fed") continued raising the federal funds target rate during the
period, implementing four additional increases of 25 basis points each. These
moves brought the target rate to 4.75 percent. The final hike of the period
represented the fifteenth consecutive increase--the longest stretch of increases
in 25 years. As the period came to a close, market observers speculated about
the Fed's near-term intentions, given the central bank's view that although
longer-term inflation currently appeared contained, commodity prices could
amplify inflationary pressures.
Returns across the municipal bond market varied significantly. As investors
sought income opportunities, lower rated bonds outpaced investment-grade bonds
by a wide margin. Long-term bonds earned the best returns, broadly speaking,
while bonds in the three-to-seven year range posted the most muted gains.
Municipal bond issuance was robust during the final months of 2005. (In fact,
2005 marked a record high for municipal bond volume.) The tide changed in 2006,
however. As rising rates discouraged issuers from refinancing debt, national
municipal issuance dropped by approximately 25 percent in the first four months
of the year versus the same period in 2005. While supply ebbed, the market's
appetite for municipal bonds remained strong, with particularly heavy demand
from high yield municipal bond funds.
Although slowing refunding activity in 2006 contributed to a drop in issuance
that was in line with national trends, New York remained a leading issuer of
municipal bonds during the period. The state currently enjoys a stable credit
outlook, and economic growth has boosted state revenues. The securities and
tourism industries count among the state's bright spots, as does the real estate
market. Growth in professional and business services has served as a catalyst
for employment gains in the New York City metropolitan area and the Hudson
Valley region. Manufacturing activity, especially in upstate New York, remains a
notable pocket of economic weakness, however.
2
PERFORMANCE ANALYSIS
The trust's return can be calculated based upon either the market price or the
net asset value (NAV) of its shares. NAV per share is determined by dividing the
value of the trust's portfolio securities, cash and other assets, less all
liabilities and preferred shares, by the total number of common shares
outstanding, while market price reflects the supply and demand for the shares.
As a result, the two returns can differ, as they did during the reporting
period. On an NAV basis, the trust outperformed its benchmark index, the Lehman
Brothers New York Municipal Bond Index. On a market price basis, the trust
underperformed its benchmark.
TOTAL RETURNS FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2006
--------------------------------------------------------------
BASED ON BASED ON LEHMAN BROTHERS NEW YORK
NAV MARKET PRICE MUNICIPAL BOND INDEX
2.26% 0.94% 1.56%
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Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. Investment return, net asset value and common share market price will
fluctuate and trust shares, when sold, may be worth more or less than their
original cost. See Performance Summary for additional performance information
and index definition.
The trust uses leverage to enhance its dividend to common shareholders. The
trust borrows money at short-term rates through the issuance of preferred
shares. The proceeds are reinvested in longer-term securities, taking advantage
of the difference between short- and longer-term rates. The Fed's policy of
raising interest rates throughout the period made the trust's borrowing activity
more expensive, which reduced the benefits of the trust's leverage activities.
We managed the trust according to a long-term "buy and hold" discipline anchored
by rigorous research. We sought what we believed to be high quality bonds with
attractive return potential and good liquidity. (Liquid securities are those for
which there is a robust market of purchasers and sellers.) We also engaged in
selective, opportunistic relative value trading, selling holdings to purchase
those which we believed offer more attractive characteristics.
We sought opportunities to enhance the trust's yield during the period. For
example, we added BBB rated tobacco revenue bonds. Our decision to increase
tobacco bond exposure reflected our analytical findings of strong tobacco
industry fundamentals and an improving litigation environment. As of the close
of the period, tobacco issues represented more than 10 percent of the trust's
bonds. We also increased the trust's stake in health care, housing, airline and
airline facility issues.
Based on our view that interest rates would continue to rise, with longer-term
rates advancing less rapidly, we kept the trust's duration shorter than its
benchmark's. (Duration is a measure of interest rate sensitivity.) The trust
also
3
benefited from its emphasis on bonds with long maturities, which outperformed
bonds with shorter maturities. Our purchases favored bonds with maturities of 20
years and longer. In contrast, we sold intermediate- and short-term bonds with
maturities of 15 years and less. Short-term pre-refunded issues were also
included among our sales. Consistent with our quality-driven approach, 100
percent of bonds in the portfolio carried investment-grade ratings of BBB or
higher at the close of the period, while 72 percent were rated AA or higher. The
trust's portfolio was well-represented across the major sectors of the municipal
bond market. As of the close of the period, the trust's largest allocations were
to the general purpose, hospital, tobacco settlement, public transportation and
student housing sectors.
VTN's procedure for reinvesting all dividends and distributions in common shares
is through purchases in the open market. This method helps support the market
value of the Fund's shares. In addition, we would like to remind you that the
Trustees have approved a procedure whereby the Fund may, when appropriate,
purchase shares in the open market or in privately negotiated transactions at a
price not above market value or net asset value, whichever is lower at the time
of purchase.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the trust in
the future.
RATINGS ALLOCATION AS OF APRIL 30, TOP 5 SECTORS AS OF APRIL 30, 2006
2006 General Purpose 14.3%
AAA/Aaa 46.9% Hospital 12.8
AA/Aa 25.3 Tobacco Settlement 10.2
A/a 10.6 Public Transportation 8.7
BBB/Baa 17.2 Student Housing 7.9
Subject to change daily. Provided for informational purposes only and should not
be deemed as a recommendation to buy or sell the securities mentioned or
securities in the sectors shown above. Ratings are as a percentage of total
investments. Sectors are as a percentage of long-term investments. Securities
are classified by sectors that represent broad groupings of related industries.
Van Kampen is a wholly owned subsidiary of a global securities firm which is
engaged in a wide range of financial services including, for example, securities
trading and brokerage activities, investment banking, research and analysis,
financing and financial advisory services. Rating allocations based upon ratings
as issued by Standard and Poor's and Moody's, respectively.
4
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
Each Van Kampen trust provides a complete schedule of portfolio holdings
in its semiannual and annual reports within 60 days of the end of the
trust's second and fourth fiscal quarters. The semiannual reports and the
annual reports are filed electronically with the Securities and Exchange
Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Van Kampen
also delivers the semiannual and annual reports to trust shareholders,
and makes these reports available on its public Web site,
www.vankampen.com. In addition to the semiannual and annual reports that
Van Kampen delivers to shareholders and makes available through the Van
Kampen public Web site, each trust files a complete schedule of portfolio
holdings with the SEC for the trust's first and third fiscal quarters on
Form N-Q. Van Kampen does not deliver the reports for the first and third
fiscal quarters to shareholders, nor are the reports posted to the Van
Kampen public Web site. You may, however, obtain the Form N-Q filings (as
well as the Form N-CSR and N-CSRS filings) by accessing the SEC's Web
site, http://www.sec.gov. You may also review and copy them at the SEC's
Public Reference Room in Washington, DC. Information on the operation of
the SEC's Public Reference Room may be obtained by calling the SEC at
(800) SEC-0330. You can also request copies of these materials, upon
payment of a duplicating fee, by electronic request at the SEC's e-mail
address (publicinfo@sec.gov) or by writing the Public Reference section
of the SEC, Washington, DC 20549-0102.
You may obtain copies of a trust's fiscal quarter filings by contacting
Van Kampen Client Relations at (800) 847-2424.
5
PROXY VOTING POLICY AND PROCEDURES AND PROXY VOTING RECORD
You may obtain a copy of the trust's Proxy Voting Policy and Procedures
without charge, upon request, by calling toll free (800) 847-2424 or by
visiting our Web site at www.vankampen.com. It is also available on the
Securities and Exchange Commission's Web site at http://www.sec.gov.
You may obtain information regarding how the trust voted proxies relating
to portfolio securities during the most recent twelve-month period ended
June 30 without charge by visiting our Web site at www.vankampen.com.
This information is also available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
6
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
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MUNICIPAL BONDS 155.8%
NEW YORK 148.1%
$1,000 Amherst, NY Indl Dev Agy Civic Fac Rev UBF Fac
Student Hsg Ser A (AMBAC Insd).................. 5.750% 08/01/25 $ 1,090,000
1,000 Amherst, NY Indl Dev Agy Civic Fac Rev UBF Fac
Student Hsg Ser B (AMBAC Insd).................. 5.750 08/01/30 1,090,000
1,250 Erie Cnty, NY Indl Dev Agy Sch Fac Rev City of
Buffalo Proj (FSA Insd)......................... 5.750 05/01/19 1,367,337
1,500 Erie Cnty, NY Indl Dev Agy Sch Fac Rev City of
Buffalo Proj (FSA Insd)......................... 5.750 05/01/20 1,640,805
1,250 Erie Cnty, NY Indl Dev Agy Sch Fac Rev City of
Buffalo Proj (FSA Insd)......................... 5.750 05/01/23 1,360,450
1,000 Erie Cnty, NY Pub Impt Ser C (Prerefunded @
07/01/10) (AMBAC Insd).......................... 5.500 07/01/29 1,079,380
1,000 Essex Cnty, NY Indl Dev Agy Rev Intl Paper Ser A
Rfdg (AMT)...................................... 5.200 12/01/23 1,004,520
1,610 Grand Central NY Dist Mgmt Assn Inc Cap Impt
Business Impt & Rfdg (a)........................ 5.000 01/01/16 1,680,244
1,500 Hempstead Town, NY Indl Dev Agy Civic Fac Rev
Adelphi Univ Civic Fac.......................... 5.000 10/01/30 1,529,085
2,000 Islip, NY Res Recovery Agy Rev 1985 Fac Ser B
(AMT) (AMBAC Insd).............................. 7.250 07/01/11 2,307,540
1,110 Islip, NY Res Recovery Agy Rev 1985 Fac Ser E
(AMT) (FSA Insd) (a)............................ 5.750 07/01/18 1,213,663
1,100 Islip, NY Res Recovery Agy Rev 1985 Fac Ser E
(AMT) (FSA Insd)................................ 5.750 07/01/20 1,202,729
12,500 Long Island Pwr Auth NY Elec Sys Rev Gen Ser A
(FGIC Insd)..................................... 5.250 12/01/20 13,500,625
1,000 Long Island Pwr Auth NY Elec Sys Rev Gen Ser
B............................................... 5.000 12/01/35 1,024,250
4,000 Long Island Pwr Auth NY Elec Sys Rev Gen Ser
C............................................... 5.500 09/01/19 4,294,000
1,500 Long Island Pwr Auth NY Elec Sys Rev Gen Ser
C............................................... 5.500 09/01/21 1,610,250
1,000 Madison Cnty, NY Indl Dev Agy Morrisville St
College Foundation Ser A (CIFG Insd)............ 5.000 06/01/28 1,034,820
3,300 Metropolitan Trans Auth NY Rev Ser A (AMBAC
Insd)........................................... 5.000 11/15/33 3,410,022
4,000 Metropolitan Trans Auth NY Rev Ser A Rfdg (AMBAC
Insd)........................................... 5.500 11/15/19 4,335,320
5,000 Metropolitan Trans Auth NY Rev Ser A Rfdg (FSA
Insd)........................................... 5.000 11/15/30 5,126,900
4,000 Metropolitan Trans Auth NY Svc Contract Ser A
Rfdg............................................ 5.125 01/01/29 4,148,720
1,115 Monroe Woodbury, NY Cent Sch Ser A Rfdg (FGIC
Insd)........................................... 5.000 05/15/19 1,170,304
1,500 Montgomery Cnty, NY Indl Dev Agy Lease Rev HFM
Boces Ser A (XLCA Insd)......................... 5.000 07/01/24 1,547,115
1,500 Montgomery Cnty, NY Indl Dev Agy Lease Rev HFM
Boces Ser A (XLCA Insd)......................... 5.000 07/01/34 1,536,300
See Notes to Financial Statements 7
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
--------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$1,125 Nassau Cnty, NY Impt Ser E (FSA Insd)
(Prerefunded @ 03/01/10)........................ 6.000% 03/01/20 $ 1,218,690
2,000 Nassau Cnty, NY Interim Fin Auth Sales Tax Secd
Ser A (Prerefunded @ 11/15/10).................. 5.750 11/15/15 2,173,600
730 Nassau Cnty, NY Interim Fin Auth Sales Tax Secd
Ser A1 (AMBAC Insd)............................. 5.375 11/15/15 785,232
3,000 Nassau Cnty, NY Tob Settlement Corp Ser A-3..... 5.000 06/01/35 2,912,580
5,000 Nassau Cnty, NY Tob Settlement Corp Ser A-3..... 5.125 06/01/46 4,858,950
2,000 New York City Fiscal 2003 Ser I................. 5.750 03/01/16 2,187,780
5,600 New York City Hsg Dev Corp Cap Fd Pgm NYC Hsg
Auth Pgm Ser A (FGIC Insd)...................... 5.000 07/01/25 5,793,312
2,330 New York City Hsg Dev Corp Multi-Family Hsg Rev
Ser C (AMT) (a)................................. 4.800 05/01/37 2,250,174
4,000 New York City Hsg Dev Corp Multi-Family Hsg Rev
Ser J-1......................................... 4.850 05/01/36 3,981,160
2,500 New York City Hsg Dev Corp Multi-Family Hsg Rev
Ser L (AMT)..................................... 5.050 11/01/39 2,487,575
1,110 New York City Indl Dev Agy Brooklyn Navy Yard
(AMT)........................................... 5.650 10/01/28 1,114,717
1,355 New York City Indl Dev Agy Civic Fac Rev
Nightingale Bamford Sch Rfdg (AMBAC Insd)....... 5.250 01/15/19 1,440,988
3,375 New York City Indl Dev Agy Rev Liberty
Interactive Corp................................ 5.000 09/01/35 3,389,782
6,230 New York City Indl Dev Agy Spl Fac Rev Rols RR
II (Inverse Fltg) (AMT) (Acquired 12/09/05, Cost
$6,945,702) (c)................................. 6.891 01/01/19 6,952,244
1,230 New York City Indl Dev Civic YMCA Gtr NY Proj... 5.850 08/01/08 1,270,098
1,450 New York City Indl Dev Civic YMCA Gtr NY Proj... 5.800 08/01/16 1,496,197
2,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser B (FSA Insd)............................ 5.000 06/15/29 2,059,240
4,835 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser C (MBIA Insd)........................... 5.000 06/15/28 5,012,299
2,650 New York City Muni Wtr Fin Ser B................ 6.000 06/15/33 2,886,777
435 New York City Ser E (Escrowed to Maturity) (MBIA
Insd)........................................... 6.200 08/01/08 458,729
1,065 New York City Ser E (MBIA Insd)................. 6.200 08/01/08 1,122,382
1,200 New York City Ser G............................. 5.250 08/01/16 1,265,304
5,000 New York City Ser G............................. 5.000 08/01/24 5,153,500
3,000 New York City Ser G............................. 5.000 12/01/24 3,083,190
2,000 New York City Ser G............................. 5.000 12/01/25 2,054,020
2,115 New York City Ser G............................. 5.000 12/01/26 2,169,102
1,250 New York City Ser K............................. 5.625 08/01/13 1,320,812
4,000 New York City Ser K............................. 5.000 08/01/24 4,117,720
3,000 New York City Sub Ser F-1....................... 5.000 09/01/25 3,086,670
8,750 New York City Transitional Cultural Res Rev
Amern Museum Nat History Ser A Rfdg (MBIA
Insd)........................................... 5.000 07/01/44 8,952,737
8 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
--------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$3,500 New York City Transitional Fin Auth Rev Future
Tax Secd Ser B (MBIA Insd)...................... 5.250% 05/01/16 $ 3,753,645
2,500 New York City Transitional Fin Auth Rev Future
Tax Secd Ser C (AMBAC Insd)..................... 5.250 08/01/21 2,656,850
6,000 New York City Transitional Fin Auth Rev Future
Tax Secd Ser D (MBIA Insd)...................... 5.250 02/01/19 6,381,840
3,750 New York Cnty Tob Tr IV Settlement Pass Thru Ser
A............................................... 5.000 06/01/45 3,573,900
745 New York St Dorm Auth Lease Rev Master Boces Pgm
(FSA Insd)...................................... 5.250 08/15/21 792,911
500 New York St Dorm Auth Lease Rev Master Boces Pgm
(FSA Insd)...................................... 5.250 08/15/23 532,155
2,150 New York St Dorm Auth Lease Rev Master Boces Pgm
Ser A (FSA Insd) (a)............................ 5.250 08/15/16 2,289,470
1,000 New York St Dorm Auth Lease Rev Master Boces Pgm
Ser A (FSA Insd)................................ 5.250 08/15/17 1,057,860
5,200 New York St Dorm Auth Rev Catholic Hlth L.I.
Oblig Grp....................................... 5.000 07/01/27 5,201,352
2,750 New York St Dorm Auth Rev Catholic Hlth L.I.
Oblig Grp....................................... 5.100 07/01/34 2,751,815
3,500 New York St Dorm Auth Rev City Univ Cons Third
Ser 1 (FGIC Insd)............................... 5.250 07/01/25 3,657,045
3,125 New York St Dorm Auth Rev City Univ Sys Cons Ser
A............................................... 5.625 07/01/16 3,437,969
2,500 New York St Dorm Auth Rev Cons City Univ Sys
Second Gen Ser A................................ 5.750 07/01/13 2,719,675
1,670 New York St Dorm Auth Rev Dept Ed (a)........... 5.250 07/01/19 1,762,368
2,500 New York St Dorm Auth Rev Dept Hlth Ser A (CIFG
Insd)........................................... 5.000 07/01/25 2,582,500
2,500 New York St Dorm Auth Rev Grace Manor Hlthcare
Fac............................................. 6.150 07/01/18 2,560,175
3,800 New York St Dorm Auth Rev Hosp (MBIA Insd)...... 5.000 08/01/33 3,912,404
2,340 New York St Dorm Auth Rev Insd Brooklyn Law Sch
Ser B (XLCA Insd)............................... 5.375 07/01/23 2,506,421
1,425 New York St Dorm Auth Rev Insd John T Mather Mem
Hosp Rfdg (Connie Lee Insd) (a)................. 6.500 07/01/08 1,503,432
1,000 New York St Dorm Auth Rev Insd John T Mather Mem
Hosp Rfdg (Connie Lee Insd)..................... 6.500 07/01/10 1,100,630
1,720 New York St Dorm Auth Rev Insd John T Mather Mem
Hosp Rfdg (Connie Lee Insd) (a)................. 6.500 07/01/11 1,926,331
1,000 New York St Dorm Auth Rev Insd NY Univ Ser 2
(AMBAC Insd).................................... 5.000 07/01/41 1,015,640
890 New York St Dorm Auth Rev Mental Hlth Fac Ser B
(a)............................................. 5.250 02/15/22 937,918
1,660 New York St Dorm Auth Rev Mental Hlth Svc Ser B
(MBIA Insd)..................................... 5.250 08/15/31 1,723,063
See Notes to Financial Statements 9
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
--------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$3,500 New York St Dorm Auth Rev Mtg Montefiore Hosp
(FGIC Insd)..................................... 5.000% 08/01/29 $ 3,606,120
9,000 New York St Dorm Auth Rev Mtg Montefiore Hosp
(FGIC Insd)..................................... 5.000 08/01/33 9,240,120
2,525 New York St Dorm Auth Rev Non St Supported Debt
Insd Providence Rest (ACA Insd)................. 5.125 07/01/30 2,578,580
2,000 New York St Dorm Auth Rev Non St Supported Debt
Insd Providence Rest (ACA Insd)................. 5.000 07/01/35 2,010,820
4,000 New York St Dorm Auth Rev Non St Supported Debt
Mtg Hosp Spl Surgery (MBIA Insd)................ 5.000 08/15/29 4,136,360
5,000 New York St Dorm Auth Rev Non St Supported Debt
Saint Lukes Roosevelt Hosp (FHA Gtd)............ 4.800 08/15/25 5,008,600
1,000 New York St Dorm Auth Rev Sch Dist Fin Pgm Ser C
(MBIA Insd)..................................... 5.375 10/01/15 1,080,720
1,500 New York St Dorm Auth Rev Sch Dist Fin Pgm Ser D
(MBIA Insd)..................................... 5.500 10/01/17 1,624,110
1,000 New York St Dorm Auth Rev Sch Dist Fin Pgm Ser I
(MBIA Insd)..................................... 5.750 10/01/18 1,098,550
3,000 New York St Dorm Auth Rev Secd Hosp North Gen
Hosp Rfdg....................................... 5.750 02/15/18 3,260,280
1,000 New York St Dorm Auth Rev St Univ Ed Fac 1989
Res (MBIA Insd)................................. 6.000 05/15/15 1,093,530
2,000 New York St Dorm Auth Rev St Univ Ed Fac 1989
Res (MBIA Insd)................................. 6.000 05/15/16 2,187,840
3,600 New York St Dorm Auth Rev St Univ Ed Fac Ser A
(MBIA Insd)..................................... 5.250 05/15/15 3,866,292
5,010 New York St Dorm Auth Rev St Univ Ed Fac Ser B.. 5.250 05/15/19 5,355,139
300 New York St Environmental Fac Corp Pollutn Ctl
Rev St Wtr Revolving Fd Ser A (Escrowed to
Maturity)....................................... 5.750 06/15/12 332,055
95 New York St Environmental Fac Corp Pollutn Ctl
Rev St Wtr Ser 02............................... 5.750 06/15/12 104,698
500 New York St Environmental Fac Corp Pollutn Ctl
Rev St Wtr Ser 02 (Escrowed to Maturity)........ 5.750 06/15/12 553,425
1,000 New York St Environmental Fac Corp St Clean Wtr
& Drinking Revolving Fd Muni Wtr Proj Ser B..... 5.250 06/15/20 1,067,260
1,640 New York St Environmental Fac Corp St Clean Wtr
& Drinking Revolving Fd Pooled Fin Pgm I........ 5.250 09/15/19 1,747,896
1,565 New York St Environmental Fac Corp St Clean Wtr
& Drinking Revolving Fd Ser B................... 5.000 06/15/20 1,629,916
3,695 New York St Environmental Fac Corp St Clean Wtr
& Drinking Revolving Fd Ser B (a)............... 5.000 06/15/21 3,854,550
3,500 New York St Hsg Fin Agy Rev Multi-Family Hsg
Secd Mtg Pgm Ser A (AMT)........................ 7.050 08/15/24 3,544,485
10 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
--------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$1,200 New York St Hsg Fin Agy Rev Newburgh Interfaith
Hsg Ser A (a)................................... 7.050% 11/01/12 $ 1,246,752
1,250 New York St Hsg Fin Agy St Personal Income Tax
Rev Econ Dev & Hsg Ser A (FGIC Insd)............ 5.000 09/15/34 1,286,788
2,125 New York St Hsg Fin Agy St Personal Income Tax
Rev Econ Dev & Hsg Ser A (a).................... 5.000 09/15/25 2,211,254
1,075 New York St Hsg Fin Agy St Personal Income Tax
Rev Econ Dev & Hsg Ser A........................ 5.250 09/15/19 1,145,929
2,000 New York St Hsg Fin Agy St Personal Income Tax
Rev Econ Dev & Hsg Ser A........................ 5.250 09/15/21 2,133,340
7,000 New York St Loc Govt Assistance Corp Ser E
Rfdg............................................ 6.000 04/01/14 7,909,650
5,500 New York St Mtg Agy Rev Homeowner Mtg Ser 130
(AMT)........................................... 4.650 04/01/27 5,383,840
2,250 New York St Mtg Agy Rev Homeowner Mtg Ser 130
(AMT)........................................... 4.800 10/01/37 2,200,253
965 New York St Mtg Agy Rev Homeowner Mtg Ser 71
(AMT)........................................... 5.400 04/01/29 980,006
7,280 New York St Mtg Agy Rev Homeowner Mtg Ser 79
(AMT)........................................... 5.300 04/01/29 7,429,750
1,990 New York St Mtg Agy Rev Ser 101 (AMT)........... 5.400 04/01/32 2,030,457
2,000 New York St Twy Auth Svc Contract Rev Loc Hwy &
Brdg............................................ 5.500 04/01/16 2,163,380
4,650 New York St Urban Dev Corp Rev Correctional Fac
Ser A Rfdg...................................... 5.500 01/01/14 5,004,563
1,625 New York St Urban Dev Corp Rev Proj Ctr for Indl
Innovation Rfdg................................. 5.500 01/01/13 1,758,055
1,000 Niagara Falls, NY City Sch Dist Ctf Partn High
Sch Fac Rfdg (FSA Insd)......................... 5.000 06/15/25 1,032,890
1,060 Niagara Falls, NY Wtr Treatment Plant (AMT)
(MBIA Insd)..................................... 7.250 11/01/10 1,198,118
3,570 Niagara, NY Frontier Auth Trans Arpt Rev Buffalo
Niagara Intl Arpt Ser A (AMT) (MBIA Insd)....... 5.625 04/01/29 3,755,747
2,500 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK
Intl Arpt Terminal 6 (AMT) (MBIA Insd).......... 5.750 12/01/25 2,570,850
5,000 Port Auth, NY & NJ Cons 132nd Ser............... 5.000 09/01/26 5,165,300
1,000 Rockland Cnty, NY Solid Waste Mgmt Auth Ser B
(AMT) (AMBAC Insd).............................. 5.125 12/15/28 1,033,020
1,250 Sodus, NY Ctr Sch Dist Rfdg (FGIC Insd) (a)..... 5.125 06/15/17 1,322,038
1,000 Tobacco Settlement Fin Corp NY Ser C-1.......... 5.500 06/01/22 1,067,910
1,000 Triborough Brdg & Tunl Auth NY Rev Gen Purp Ser
A............................................... 5.250 01/01/17 1,062,060
6,945 Triborough Brdg & Tunl Auth NY Rev Gen Purp Ser
A............................................... 5.250 01/01/18 7,376,007
1,815 Triborough Brdg & Tunl Auth NY Rev Gen Purp Ser
A............................................... 5.000 01/01/32 1,848,523
See Notes to Financial Statements 11
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
--------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
$1,600 Triborough Brdg & Tunl Auth NY Rev Gen Purp Ser
B Rfdg.......................................... 5.125% 11/15/29 $ 1,672,368
2,000 Triborough Brdg & Tunl Auth NY Rev Rfdg (MBIA
Insd)........................................... 5.000 11/15/32 2,050,980
12,500 Tsasc, Inc NY Ser 1............................. 5.000 06/01/34 12,141,250
10,000 Tsasc, Inc NY Ser 1............................. 5.125 06/01/42 9,758,600
1,360 Warren & Wash Cnty NY Indl Dev Agy Civic Fac Rev
Glens Falls Hosp Proj Ser A (FSA Insd).......... 5.000 12/01/35 1,392,286
635 West Islip, NY Un Free Sch Dist Rfdg (FSA
Insd)........................................... 5.000 10/01/18 670,389
7,000 Westchester Tob Asset Securitization Corp NY.... 5.125 06/01/45 6,804,070
1,145 Western Nassau Cnty, NY Wtr Auth Wtr Sys Rev
(AMBAC Insd).................................... 5.000 05/01/26 1,190,880
4,500 Yonkers, NY Indl Dev Agy Civic Cmnty Dev Ppty
Yonkers Inc Ser A (Prerefunded @ 02/01/11)
(b)............................................. 6.625 02/01/26 5,073,750
-------------
376,749,708
-------------
PUERTO RICO 5.8%
8,000 Puerto Rico Comwlth Hwy & Trans Auth Hwy Rev Ser
Y (FSA Insd).................................... 6.250 07/01/21 9,650,160
5,000 Puerto Rico Pub Bldg Auth Rev Govt Fac Ser I
(Comwlth Gtd)................................... 5.250 07/01/33 5,194,850
-------------
14,845,010
-------------
U. S. VIRGIN ISLANDS 1.9%
1,500 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A..................................... 6.375 10/01/19 1,643,550
3,000 Virgin Islands Pub Fin Auth Rev Gross Rcpt Taxes
Ln Nt Ser A (ACA Insd).......................... 6.125 10/01/29 3,253,320
-------------
4,896,870
-------------
TOTAL INVESTMENTS 155.8%
(Cost $383,982,604)....................................................... 396,491,588
OTHER ASSETS IN EXCESS OF LIABILITIES 1.2%................................. 3,110,220
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (57.0%)................. (145,118,571)
-------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0%.............................. $ 254,483,237
=============
Percentages are calculated as a percentage of net assets applicable to common
shares.
(a) The Trust owns 100% of the outstanding bond issuance.
(b) All or a portion of this security has been physically segregated in
connection with open futures contracts.
12 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
PORTFOLIO OF INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) continued
(c) This security is restricted and may be resold only in transactions exempt
from registration which are normally those transactions with qualified
institutional buyers. Restricted securities comprise 2.7% of net assets
applicable to common shares.
ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
CIFG--CDC IXIS Financial Guaranty
Comwlth--Commonwealth of Puerto Rico
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FHA--Federal Housing Administration
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.
XLCA--XL Capital Assurance Inc.
FUTURES CONTRACTS OUTSTANDING AS OF APRIL 30, 2006
UNREALIZED
APPRECIATION/
CONTRACTS DEPRECIATION
SHORT CONTRACTS:
U.S. Treasury Notes 5-Year Futures June 06 (Current Notional
Value $104,156 per contract).............................. 415 $297,859
=== ========
SWAP AGREEMENTS OUTSTANDING AS OF APRIL 30, 2006
INTEREST RATE SWAPS
PAY/
RECEIVE NOTIONAL UNREALIZED
FLOATING FIXED EXPIRATION AMOUNT APPRECIATION/
COUNTERPARTY FLOATING RATE INDEX RATE RATE DATE (000) DEPRECIATION
JP Morgan Chase Bank,
N.A. ............... USD-BMA Municipal
Swap Index Receive 4.375% 07/11/26 5,400 $ 5,511
JP Morgan Chase Bank,
N.A. ............... USD-BMA Municipal
Swap Index Receive 4.137 06/28/26 $8,130 235,391
-------------
$240,902
=============
See Notes to Financial Statements 13
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2006 (Unaudited)
ASSETS:
Total Investments (Cost $383,982,604)....................... $396,491,588
Receivables:
Interest.................................................. 5,834,286
Investments Sold.......................................... 4,246,551
Swap Contracts.............................................. 240,902
Other....................................................... 3,533
------------
Total Assets............................................ 406,816,860
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 5,208,356
Custodian Bank............................................ 707,229
Investment Advisory Fee................................... 180,995
Income Distributions--Common Shares....................... 67,442
Variation Margin on Futures............................... 64,844
Other Affiliates.......................................... 14,744
Trustees' Deferred Compensation and Retirement Plans........ 838,419
Accrued Expenses............................................ 63,023
------------
Total Liabilities....................................... 7,145,052
Preferred Shares (including accrued distributions).......... 145,188,571
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $254,483,237
============
NET ASSET VALUE PER COMMON SHARE ($254,483,237 divided by
15,482,525 shares outstanding)............................ $ 16.44
============
NET ASSETS CONSIST OF:
Common Shares ($.01 par value with an unlimited number of
shares authorized, 15,482,525 shares issued and
outstanding).............................................. $ 154,825
Paid in Surplus............................................. 236,726,568
Net Unrealized Appreciation................................. 13,047,745
Accumulated Net Realized Gain............................... 3,983,630
Accumulated Undistributed Net Investment Income............. 570,469
------------
NET ASSETS APPLICABLE TO COMMON SHARES...................... $254,483,237
============
PREFERRED SHARES ($.01 par value, authorized 100,000,000
shares, 5,800 issued with liquidation preference of
$25,000 per share)........................................ $145,000,000
============
NET ASSETS INCLUDING PREFERRED SHARES....................... $399,483,237
============
14 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
FINANCIAL STATEMENTS continued
Statement of Operations
For the Six Months Ended April 30, 2006 (Unaudited)
INVESTMENT INCOME:
Interest.................................................... $ 9,685,141
-----------
EXPENSES:
Investment Advisory Fee..................................... 1,100,219
Preferred Share Maintenance................................. 208,682
Trustees' Fees and Related Expenses......................... 53,667
Custody..................................................... 34,734
Legal....................................................... 20,673
Other....................................................... 207,874
-----------
Total Expenses........................................ 1,625,849
-----------
NET INVESTMENT INCOME....................................... $ 8,059,292
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Realized Gain/Loss:
Investments............................................... $ 3,543,238
Futures................................................... 1,493,839
-----------
Net Realized Gain........................................... 5,037,077
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 19,031,014
-----------
End of the Period:
Investments............................................. 12,508,984
Futures................................................. 297,859
Swap Contracts.......................................... 240,902
-----------
13,047,745
-----------
Net Unrealized Depreciation During the Period............... (5,983,269)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $ (946,192)
===========
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS..................... $(2,413,075)
===========
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS................................................ $ 4,700,025
===========
See Notes to Financial Statements 15
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets (Unaudited)
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
------------------------------------
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 8,059,292 $ 6,716,885
Net Realized Gain....................................... 5,037,077 4,363,302
Net Unrealized Depreciation During the Period........... (5,983,269) (6,212,049)
Distributions to Preferred Shareholders:
Net Investment Income................................. (1,470,838) (1,327,678)
Net Realized Gain..................................... (942,237) (23,825)
------------ ------------
Change in Net Assets Applicable to Common Shares from
Operations............................................ 4,700,025 3,516,635
Distributions to Common Shareholders:
Net Investment Income................................. (6,595,558) (5,823,024)
Net Realized Gain..................................... (3,912,434) (280,125)
------------ ------------
NET CHANGE IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM INVESTMENT ACTIVITIES............................ (5,807,967) (2,586,514)
FROM CAPITAL TRANSACTIONS:
Proceeds from Common Shares Acquired Through Merger..... -0- 155,848,861
------------ ------------
TOTAL INCREASE/DECREASE IN NET ASSETS APPLICABLE TO
COMMON SHARES......................................... (5,807,967) 153,262,347
NET ASSETS APPLICABLE TO COMMON SHARES:
Beginning of the Period................................. 260,291,204 107,028,857
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $570,469 and $577,573,
respectively)......................................... $254,483,237 $260,291,204
============ ============
16 See Notes to Financial Statements
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------
2006 2005 2004 2003 2002 (F) 2001
-------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF THE PERIOD... $ 16.81 $ 17.23 $ 17.37 $ 17.59 $ 17.50 $ 16.64
------- ------- ------- ------- ------- -------
Net Investment Income..................... .52(a) 1.07 1.12 1.17 1.22 1.25
Net Realized and Unrealized Gain/Loss..... (.06) (.29) .31 .20 .20 1.19
Common Share Equivalent of Distributions
Paid to Preferred Shareholders:
Net Investment Income................... (.09) (.21) (.09) (.06) (.12) (.25)
Net Realized Gain....................... (.06) -0-* (.02) (.04) (.03) (.10)
------- ------- ------- ------- ------- -------
Total from Investment Operations........... .31 .57 1.32 1.27 1.27 2.09
Distributions Paid to Common Shareholders:
Net Investment Income..................... (.43) (.94) (1.06) (1.13) (1.06) (.98)
Net Realized Gain......................... (.25) (.05) (.40) (.36) (.12) (.25)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF THE PERIOD......... $ 16.44 $ 16.81 $ 17.23 $ 17.37 $ 17.59 $ 17.50
======= ======= ======= ======= ======= =======
Common Share Market Price at End of the
Period.................................... $ 15.03 $ 15.57 $ 15.70 $ 16.60 $ 16.31 $ 16.22
Total Return (b)........................... 0.94%** 5.65% 3.24% 11.07% 7.98% 13.68%
Net Assets Applicable to Common Shares at
End of the Period (In millions)........... $ 254.5 $ 260.3 $ 107.0 $ 107.8 $ 109.1 $ 108.5
Ratio of Expenses to Average Net Assets
Applicable to Common Shares (c)........... 1.27% 1.40% 1.37% 1.38% 1.45% 1.67%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(c)....................................... 6.29% 6.24% 6.56% 6.73% 7.06% 7.22%
Portfolio Turnover......................... 25%** 41% 10% 22% 28% 15%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets
Including Preferred Shares (c)............ .81% .89% .87% .89% .93% 1.07%
Ratio of Net Investment Income to Average
Net Assets Applicable to Common Shares
(d)....................................... 5.14% 5.01% 6.04% 6.36% 6.35% 5.79%
SENIOR SECURITIES:
Total Preferred Shares Outstanding........ 5,800 5,800 2,400 2,400 2,400 2,400
Asset Coverage Per Preferred Share (e).... $68,909 $69,855 $69,600 $69,907 $70,457 $70,227
Involuntary Liquidating Preference Per
Preferred Share......................... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Average Market Value Per Preferred
Share................................... $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
* Amount is less than $.01.
** Non-Annualized
(a)Based on average shares outstanding.
(b)Total return assumes an investment at the common share market price at the
beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing common share market price at the end of the period
indicated.
(c)Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(d)Ratios reflect the effect of dividend payments to preferred shareholders.
(e)Calculated by subtracting the Trust's total liabilities (not including the
preferred shares) from the Trust's total assets and dividing this by the
number of preferred shares outstanding.
(f)As required, effective November 1, 2001, the Trust has adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
accreting market discount on fixed income securities. The effect of this
change for the period ended October 31, 2002 was to increase net investment
income per share by $.01, decrease net realized and unrealized gains and
losses per share by $.01 and increase the ratio of net investment income to
average net assets applicable to common shares by .05%. Per share, ratios and
supplemental data for periods prior to October 31, 2002 have not been
restated to reflect this change in presentation.
See Notes to Financial Statements 17
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Investment Grade New York Municipals (the "Trust") is
registered as a non-diversified, closed-end management investment company under
the Investment Company Act of 1940 (the "1940 Act"), as amended. The Trust's
investment objective is to provide a high level of current income exempt from
federal as well as New York State and New York City income taxes, consistent
with preservation of capital. The Trust will invest substantially all of its
assets in New York municipal securities rated investment grade at the time of
investment, but may invest up to 20% of its assets in unrated securities which
are believed to be of comparable quality to those rated investment grade. The
Trust commenced investment operations on March 27, 1992.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Futures contracts are valued at the settlement price established each day on the
exchange on which they are traded. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost, which approximates
market value.
B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
segregate assets with the custodian having an aggregate value at least equal to
the amount of the when-issued or delayed delivery purchase commitments until
payment is made. At April 30, 2006, there were no when-issued and delayed
delivery purchase commitments.
C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and discount is accreted over the expected life of each
applicable security.
D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
18
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
At April 30, 2006 the cost and related gross unrealized appreciation and
depreciation are as follows:
Cost of investments for tax purposes........................ $383,566,971
------------
Gross tax unrealized appreciation........................... $ 14,122,752
Gross tax unrealized depreciation........................... (1,198,135)
------------
Net tax unrealized appreciation on investments.............. $ 12,924,617
============
E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains and a portion of futures gains, which are
included as ordinary income for tax purposes.
The tax character of distributions paid during the year ended October 31,
2005 was as follows:
Distributions paid from:
Ordinary income........................................... $ 7,461
Tax-exempt Income......................................... 7,120,900
Long-Term capital gain.................................... 296,637
----------
$7,424,998
==========
As of October 31, 2005, the components of distributable earnings on a tax
basis were as follows:
Undistributed ordinary income............................... $ 163,785
Undistributed tax-exempt Income............................. 533,412
Undistributed long-term capital gain........................ $4,690,676
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen Asset
Management (the "Adviser") will provide investment advice and facilities to the
Trust for an annual fee payable monthly of .55% of the average daily net assets
of the Trust.
For the six months ended April 30, 2006, the Trust recognized expenses of
approximately $7,900 representing legal services provided by Skadden, Arps,
Slate, Meagher, & Flom LLP, of which a trustee of the Trust is a partner of such
firm and he and his law firm provide legal services as legal counsel to the
Trust.
Under separate Legal Services, Accounting Services and Chief Compliance
Officer (CCO) Employment agreements, the Adviser provides accounting and legal
services and the CCO provides compliance services to the Trust. The costs of
these services are allocated to each trust. For the six months ended April 30,
2006, the Trust recognized expenses of approximately $24,100, representing Van
Kampen Investments Inc.'s or its affiliates' (collectively "Van Kampen") cost of
providing accounting and legal services to the Trust, as well as, the salary,
benefits and related costs of the CCO and related support staff paid by Van
Kampen. Services provided pursuant to the Legal Services agreement are reported
as part of "Legal" expenses on the Statement of Operations. Services provided
pursuant to the
19
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
Accounting Services and CCO Employment agreement are reported as part of "Other"
expenses on the Statement of Operations.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
also officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
For the six months ended April 30, 2006 and the year ended October 31, 2005,
transactions in common shares were as follows:
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2006 OCTOBER 31, 2005
Beginning Shares........................................ 15,482,525 6,211,330
Shares Acquired Through Merger.......................... -0- 9,271,195
---------- ----------
Ending Shares........................................... 15,482,525 15,482,525
========== ==========
On October 28, 2005, the Trust acquired all of the assets and liabilities of
Van Kampen New York Quality Municipal Trust (ticker symbol VNM) and Van Kampen
New York Value Municipal Income Trust (ticker symbol VNV) through a tax free
reorganization approved by VNM and VNV shareholders on October 21, 2005. The
Trust issued 5,253,319 common shares and 1,800 Auction Preferred Shares (APS)
with a net asset value of $88,308,273 and liquidation value of $45,000,000,
respectively, in exchange for VNM's net assets. The Trust issued 4,017,876
common shares and 1,600 APS with a net asset value of $67,540,588 and
liquidation value of $40,000,000, respectively, in exchange for VNV's net
assets. The shares of VNM were converted into Trust shares at a ratio of
0.928864 to 1 and 1 to 1, for common shares and APS, respectively. The shares of
VNV were converted into Trust shares at a ratio of .936312 to 1 and 1 to 1, for
common shares and APS, respectively. Included in these net assets was a deferred
compensation and retirement plan balance of $486,347 which is included with
accumulated undistributed net investment income. Net unrealized appreciation of
VNM and VNV as of October 28, 2005 were $5,509,076 and $5,816,625, respectively.
The Trust assumed VNM and VNV's book to tax accretion differences, which
resulted in a $456,025 increase to accumulated undistributed net investment
income and a corresponding decrease to net unrealized appreciation. Combined net
assets applicable to common shares on the day of reorganization were
$260,233,331 and combined net assets including preferred shares were
$405,233,331, which included gains or losses of $565,780 recognized for tax
purposes on open future transactions at merger date of October 28, 2005. The
Trust incurred merger expenses of $153,900, which represent costs related to the
preparation, printing and distribution of the Proxy Statement/Prospectus,
Reorganization Agreement and registration statements as well as legal, audit and
filing fees.
20
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $98,130,401 and $102,434,282,
respectively.
5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
In order to seek to manage the interest rate exposure of the Trust's
portfolio in a changing interest rate environment, the Trust may purchase or
sell financial futures contracts or engage in transactions involving interest
rate swaps, caps, floors or collars. The Trust expects to enter into these
transactions primarily as a hedge against anticipated interest rate or fixed
income market changes, for duration management or for risk management purposes,
but may also enter into these transactions to generate additional income. All of
the Trust's portfolio holdings, including derivative instruments, are marked to
market each day with the change in value reflected in the unrealized
appreciation/depreciation. Upon disposition, a realized gain or loss is
recognized accordingly, except when taking delivery of a security underlying a
futures contract. In this instance, the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract. Risks may
arise as a result of the potential inability of the counterparties to meet the
terms of their contracts.
Summarized below are the specific types of derivative financial instruments
used by the Trust.
A. FUTURES CONTRACTS A futures contract is an arrangement involving the delivery
of a particular asset on a specified future date at an agreed upon price. The
Trust generally invests in exchange traded futures contracts on U.S. Treasury
securities and typically closes the contract prior to the delivery date. These
contracts are generally used to manage the Trust's effective maturity and
duration. Upon entering into futures contracts, the Trust maintains an amount of
cash or liquid securities with a value equal to a percentage of the contract
amount with either a futures commission merchant pursuant to the rules and
regulations promulgated under the 1940 Act, as amended, or with its custodian in
an account in the broker's name. This amount is known as initial margin. During
the period the futures contract is open, payments are received from or made to
the broker based upon changes in the value of the contract (the variation
margin). The risk of loss associated with a futures contract is in excess of the
variation margin reflected on the Statement of Assets and Liabilities.
Transactions in futures contracts for the six months ended April 30, 2006,
were as follows:
CONTRACTS
Outstanding at October 31, 2005............................. 633
Futures Opened.............................................. 2.155
Futures Closed.............................................. (2,373)
------
Outstanding at April 30, 2006............................... 415
======
B. INTEREST RATE SWAPS The Trust may enter into interest rate swaps primarily to
preserve a return or spread on a particular investment or portion of its
portfolio, as a duration
21
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS -- APRIL 30, 2006 (UNAUDITED) continued
management technique or to protect against any increase in the price of
securities the Trust anticipates purchasing at a later date. Interest rate swaps
are contractual agreements to exchange periodic interest payment streams
calculated on a predetermined notional principal amount. Interest rate swaps
generally involve one party paying a fixed interest rate and the other party
paying a variable rate. The Trust will usually enter into swaps on a net basis,
i.e., the two payment streams are netted out in a cash settlement on the payment
date or dates specified in the instrument, with the Trust receiving or paying,
as the case may be, only the net amount of the two payments. The Trust accrues
the net amount with respect to each swap on a daily basis. This net amount is
recorded within unrealized appreciation/depreciation on swap contracts. Upon
cash settlement of the periodic payments, the net amount is recorded as realized
gain/loss on swap contracts on the Statement of Operations. Risks may arise as a
result of the potential inability of the counterparties to meet the terms of
their contracts. If there is a default by the counterparty, the Trust will have
contractual remedies pursuant to the agreements related to the transaction.
C. INDEXED SECURITY An inverse floating rate security is one where the coupon is
inversely indexed to a short-term floating interest rate multiplied by a
specific factor. As the floating rate rises, the coupon is reduced. Conversely,
as the floating rate declines, the coupon is increased. The price of these
securities may be more volatile than the price of a comparable fixed rate
security. These instruments are typically used by the Trust to enhance the yield
of the portfolio. These instruments are identified in the Portfolio of
Investments.
6. PREFERRED SHARES
As of April 30, 2006, the Trust has outstanding 5,800 (APS). Series A contains
2,400 shares, Series B contains 1,800 shares and Series C contains 1,600 shares.
Dividends are cumulative and the dividend rates are generally reset every 28
days for Series A and B, while Series C is generally reset every 7 days through
an auction process. The average rate in effect on April 30, 2006 was 3.742%.
During the six months ended April 30, 2006, the rates ranged from 2.200% to
4.770%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense on the Statement of Operations.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
7. INDEMNIFICATIONS
The Trust enters into contracts that contain a variety of indemnifications. The
Trust's maximum exposure under these arrangements is unknown. However, the Trust
has not had prior claims or losses pursuant to these contracts and expects the
risk of loss to be remote.
22
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
BOARD OF TRUSTEES, OFFICERS AND IMPORTANT ADDRESSES
BOARD OF TRUSTEES
DAVID C. ARCH
JERRY D. CHOATE
ROD DAMMEYER
LINDA HUTTON HEAGY
R. CRAIG KENNEDY
HOWARD J KERR
JACK E. NELSON
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN* - Chairman
SUZANNE H. WOOLSEY
OFFICERS
RONALD E. ROBISON
President and Principal Executive Officer
DENNIS SHEA
Vice President
J. DAVID GERMANY
Vice President
AMY R. DOBERMAN
Vice President
STEFANIE V. CHANG
Vice President and Secretary
JOHN L. SULLIVAN
Chief Compliance Officer
PHILLIP G. GOFF
Chief Financial Officer and Treasurer
INVESTMENT ADVISER
VAN KAMPEN ASSET MANAGEMENT
1221 Avenue of the Americas
New York, New York 10020
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
One Lincoln Street
Boston, Massachusetts 02111
TRANSFER AGENT
COMPUTERSHARE TRUST COMPANY, N.A.
c/o Computershare Investor Services
P.O. Box 43010
Providence, Rhode Island 02940-3010
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM LLP
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
111 South Wacker Dr.
Chicago, Illinois 60606
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
23
Van Kampen Trust for Investment Grade New York Municipals
An Important Notice Concerning Our U.S. Privacy Policy
We are required by federal law to provide you with a copy of our Privacy
Policy annually.
The following Policy applies to current and former individual clients of Van
Kampen Investments Inc., Van Kampen Asset Management, Van Kampen Advisors
Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc. and Van
Kampen Exchange Corp., as well as current and former individual investors in
Van Kampen mutual funds, unit investment trusts, and related companies.
This Policy is not applicable to partnerships, corporations, trusts or other
non-individual clients or account holders, nor is this Policy applicable to
individuals who are either beneficiaries of a trust for which we serve as
trustee or participants in an employee benefit plan administered or advised
by us. This Policy is, however, applicable to individuals who select us to
be a custodian of securities or assets in individual retirement accounts,
401(k) accounts, 529 Educational Savings Accounts, accounts subject to the
Uniform Gifts to Minors Act, or similar accounts.
Please note that we may amend this Policy at any time, and will inform you
of any changes to this Policy as required by law.
WE RESPECT YOUR PRIVACY
We appreciate that you have provided us with your personal financial
information. We strive to maintain the privacy of such information while we
help you achieve your financial objectives. This Policy describes what
non-public personal information we collect about you, why we collect it, and
when we may share it with others.
We hope this Policy will help you understand how we collect and share
non-public personal information that we gather about you. Throughout this
Policy, we refer to the non-public information that personally identifies
you or your accounts as "personal information."
1. WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?
To serve you better and manage our business, it is important that we collect
and maintain accurate information about you. We may obtain this information
from applications and other forms you submit to us, from your dealings with
us, from consumer reporting agencies, from our Web sites and from third
parties and other sources.
(continued on next page)
Van Kampen Trust for Investment Grade New York Municipals
An Important Notice Concerning Our U.S. Privacy Policy continued
For example:
-- We may collect information such as your name, address, e-mail address,
telephone/fax numbers, assets, income and investment objectives through
applications and other forms you submit to us.
-- We may obtain information about account balances, your use of
account(s) and the types of products and services you prefer to receive
from us through your dealings and transactions with us and other
sources.
-- We may obtain information about your creditworthiness and credit
history from consumer reporting agencies.
-- We may collect background information from and through third-party
vendors to verify representations you have made and to comply with
various regulatory requirements.
-- If you interact with us through our public and private Web sites, we
may collect information that you provide directly through online
communications (such as an e-mail address). We may also collect
information about your Internet service provider, your domain name,
your computer's operating system and Web browser, your use of our Web
sites and your product and service preferences, through the use of
"cookies." "Cookies" recognize your computer each time you return to
one of our sites, and help to improve our sites' content and
personalize your experience on our sites by, for example, suggesting
offerings that may interest you. Please consult the Terms of Use of
these sites for more details on our use of cookies.
2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?
To provide you with the products and services you request, to serve you
better and to manage our business, we may disclose personal information we
collect about you to our affiliated companies and to non-affiliated third
parties as required or permitted by law.
A. INFORMATION WE DISCLOSE TO OUR AFFILIATED COMPANIES. We do not disclose
personal information that we collect about you to our affiliated companies
except to enable them to provide services on our behalf or as otherwise
required or permitted by law.
(continued on back)
Van Kampen Trust for Investment Grade New York Municipals
An Important Notice Concerning Our U.S. Privacy Policy continued
B. INFORMATION WE DISCLOSE TO THIRD PARTIES. We do not disclose personal
information that we collect about you to non-affiliated third parties except
to enable them to provide services on our behalf, to perform joint marketing
agreements with other financial institutions, or as otherwise required or
permitted by law. For example, some instances where we may disclose
information about you to non-affiliated third parties include: for servicing
and processing transactions, to offer our own products and services, to
protect against fraud, for institutional risk control, to respond to
judicial process or to perform services on our behalf. When we share
personal information with these companies, they are required to limit their
use of personal information to the particular purpose for which it was
shared and they are not allowed to share personal information with others
except to fulfill that limited purpose.
3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL
INFORMATION WE COLLECT ABOUT YOU?
We maintain physical, electronic and procedural security measures to help
safeguard the personal information we collect about you. We have internal
policies governing the proper handling of client information. Third parties
that provide support or marketing services on our behalf may also receive
personal information, and we require them to adhere to confidentiality
standards with respect to such information.
Van Kampen Funds Inc.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com
Copyright (C)2006 Van Kampen Funds Inc. All rights reserved.
Member NASD/SIPC.
VTN SAR 6/06
(VAN KAMPEN INVESTMENTS SHINE LOGO) RN06-01556P-Y04/06
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
Please refer to Item #1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form
N-CSRS was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(1) Code of Ethics - Not applicable for semi-annual reports.
(2)(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.CERT.
(2)(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Trust For Investment Grade New York Municipals
By: /s/ Ronald E. Robison
------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 20, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: June 20, 2006
By: /s/ Phillip G. Goff
------------------------------
Name: Phillip G. Goff
Title: Principal Financial Officer
Date: June 20, 2006